Property can be an excellent investment, especially as it is typically less volatile than things like stocks and shares. When looking for investment properties, you should keep an eye out for stable economies, rising prices, and growing populations that can sustain demand for rental properties. It is for these reasons that the United Kingdom is such an attractive place for property investments. The United Kingdom boasts one of the most stable property markets in the world. And, with many of its cities (including some of those listed here) ranking on lists of the most liveable cities in the world, it is always a desirable location for renters and investors alike.
Property prices in the United Kingdom are increasing, however, many cities still have relatively low property prices, meaning that investments in these locations may provide a quicker return than in other cities where property prices are higher. Many of the cities below have demonstrated consistent increases in rental yields and property prices over the years and represent some of the most exciting places to invest in the United Kingdom this year. With regeneration occurring across the board, this is a great time for property investment in these cities.
Manchester, England
Manchester is a thriving and vibrant post-industrial city in the North West of England, known for its cotton mills and canals. The city has experienced substantial growth in the last ten years and continues to trend upwards with businesses booming and the rental sector growing. Manchester has several universities and a growing student population, as well as new developments in areas like Ancoats and New Islington where industrial buildings are being repurposed into apartments. The average property price is £220,000, annual rental yields are 6.25%, and prices have risen by 2.3% in the last year.
Birmingham, England
Birmingham has seen significant improvements to its infrastructure in recent years and has become one of England’s business and cultural hubs. There is regeneration occurring in the city’s East Side and Southside, and property is becoming increasingly sought after in trendy hotspots like Digbeth. The average property price in Birmingham is £207,100, annual rental yields are 5.5%, and prices have risen by 2.7% in the last year.
Liverpool, England
In recent times, Liverpool has undergone an economic revival, with incredible developments along the waterfront and in areas like the Baltic Triangle and the Knowledge Quarter. The city is an exciting place to live, with multiple universities, excellent nightlife, and a strong cultural scene. The average property price is £155,700, annual rental yields are 6.7%, and prices have risen by 1.8% in the last year.
Glasgow, Scotland
Glasgow, an artistic and stylish city in central Scotland, is becoming a hotspot for property investment, with consistent rental demand, especially as the University of Glasgow expands and the need for rented student accommodation grows. There are developments in progress in the city’s trendy West End, which is well-equipped with pubs, restaurants, and independent businesses. The average property price is £142,800, annual rental yields are 6.56%, and prices have risen by 0.3% in the last year.
Leeds, England
Though a smaller city, Leeds is buzzing with a growing influx of residents and businesses. The South Bank on the city’s waterfront is being regenerated, transforming that part of the city and bringing sought-after accommodation to the area. Leeds is home to several universities and has a growing population. It is also well-connected to Manchester and London. The average property price is £210,000, annual rental yields are 4.8%, and prices have risen 2.3% in the last year.
Newcastle, England
One of England’s most beloved cities, Newcastle is affordable, culturally thriving, and architecturally beautiful. The city has a strong demand for rental properties and new developments are underway modernising the area. The average property price is £150,000, annual rental yields are 5.7%, and prices have risen 2.1% in the last year.
Nottingham, England
Home to the legend of Robin Hood, the lovely city of Nottingham, with its castle and ancient town centre, is a great place to invest. Nottingham has a diverse and stable local economy with a steady job market. Regeneration is underway in Southside, which will bring modern apartment living and commercial opportunities to that part of the city. The average property price is £202,500, annual rental yields are 2.9%, and prices have risen 2.9% in the last year.
Hull, England
Hull is truly an up-and-coming part of the country. There are considerable developments underway along the Humber Estuary. Hull has an excellent economy and a growing population, and these waterfront developments are a great opportunity to invest in property in an increasingly popular area. The average property price is £143,000, annual rental yields are 4%, and prices have risen by 3% in the last year.
Bradford, England
Rich in culture and community spirit, Bradford, in Yorkshire is undergoing massive transformation. There are substantial developments underway in City Park and in the Broadway shopping district, meaning there are plenty of rental and business investment opportunities available. Bradford also boasts incredibly affordable housing prices, making it an attractive place to invest. The average property price is £186,000, annual rental yields are 4.7%, and prices have risen by 2% in the last year.
Derby, England
Derby is one of the most exciting markets in the United Kingdom, currently undergoing major regeneration with the 2030 Derby Masterplan. As this regeneration continues the city is projected to see price growth of 22.8% by 2028. Derby has a younger population, with a number of universities nearby, and has excellent connectivity with other cities. It is one of the best places for buy-to-let investments in the UK. The average property price is £199,000 and annual rental yields are 5.51%.
Now is a thrilling time to invest in property in the United Kingdom, and each of these cities represents a great option for return on investment and for long-term growth in your property portfolio.
